Support Center

16 Behavioral Biases

Last Updated: Jan 20, 2017 09:34AM EST

Financial Behavioral Biases are deep-rooted patterns of investor behaviors which, if not managed, can cause a client to make irrational decisions on a regular basis. A recent Vanguard study found that financial advisors bring 150 bps of value by coaching investor clients to manage these behaviors.

To make this easy for financial advisors, Financial DNA measures each of these behavioral biases independently and displays them in the Behavioral Management Guide report. Financial advisors should discuss the strongest biases with the client and agree on a strategy for managing them.

The sixteen behavioral biases measured by Financial DNA are:

1. Overconfidence
2. Loss aversion
3. Optimism bias
4. Newness bias
5. Fear of regret
6. Benchmark focus
7. Pattern bias
8. Controlling
9. Herd follower
10. Mental accounting
11. Consolidated view
12. Over trading
13. Disposition effect
14. Status quo bias
15. Risk aversion
16. Instinctive

Explore our Behavioral Bias video series below or click here for the entire list:

Recent Discussions

Ajax-loader-small
support@dnabehavior.com
https://cdn.desk.com/
false
desk
Loading
seconds ago
a minute ago
minutes ago
an hour ago
hours ago
a day ago
days ago
about
true
Invalid characters found
/customer/en/portal/articles/autocomplete
There was an error contacting Get Satisfaction
View All
0
discussions
replies
Questions
Ideas
Problems
Praise